Porter's four corners revisited


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Michael Porter’s Four Corners Model is a great tool that is used for better clarity of competitive intelligence (CI), as compared to a SWOT Analysis.

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Porter's four corners revisited

  1. 1. PORTERS FOUR CORNERSREVISITEDFor additional information about Competitive Intelligenceplease visit www.Intelligence2act.com
  2. 2. www.Intelligence2act.comMichael Porter’s Four Corners Model is a great tool that is used forbetter clarity of competitive intelligence (CI), as compared to a SWOTAnalysis.Although the Four Corners Model has been around for some time, it isjust beginning to become accepted as the go to method of forecastingthe competitions next moves. As part of any great CI analysis process,using the Four Corners Model will allow companies to get actionabledata on the direction that their competition is headed.This is an advantage over the widely adopted model of the snapshot orstatic view that can be provided by a SWOT analysis; competitor’sstrengths, weaknesses, opportunities, and threats.2
  3. 3. www.Intelligence2act.comBy tying the capabilities of a competitor to their underlying motivationsfor business success, the Four Corners Model is able provide thenecessary and actionable CI information with remarkable success.Unlike the SWOT analysis that only gives you snapshot, albeit a veryvaluable glimpse, the Four Corners Model is able to give a trend orpredictive value of your competition’s possible course of action.Drawing the data and analysis from financial goals, company culture,past business philosophies, current organizational structure, and all ofthe other relevant CI sources, the model is able to trend thecompetitor’s strengths, weaknesses, perceived culture, values, andassumptions on their current goals.3
  4. 4. www.Intelligence2act.comBy looking at the motivations, capabilities, and assumptions, the FourCorner’s Model for CI analysis can provide organizations with actionablepredictions of the future actions or reactions of one or more of theircompetitors.The accuracy of these predictions depend on the overall quality of datathat is put into the analysis, as well as the volume of data.As with any analysis, the key component to accuracy of the endproduct, is the accuracy of the input data. Using the Four Corner’sModel in combination with the SWOT analysis and a range of other CIanalysis tools will give the best results, and provide your company witha range of actionable data regarding your competitors.4
  5. 5. www.Intelligence2act.comWorking to develop a competitive intelligence process that includes theFour Corner’s Model will ensure that you have at least one predictivetool available.While it is great to know what your competition is doing at the presentmoment, it is even more valuable to have an idea of what they aregoing to do next, and how they would/will react in the future.It is important to iterate often with your CI process, so that you canhave the very best actionable information when you need it to makethe most educated decisions.5
  6. 6. For additional information about Competitive Intelligenceplease visit www.Intelligence2act.com